Goldman Sachs Backed BitGo Launches A Cold Storage Crypto Trading Platform

Jan 18, 2019 at 21:00 Update Date :Jan 18, 2019 at 21:00 UTC

BitGo, a blockchain security firm, is all set to unveil its latest development that allows crypto traders to buy and sell crypto assets without ever having to take them out of the cold storage.

This means that users having funds in their BitGo wallets can use them to trade cryptocurrencies without ever having to list them on an exchange.

BitGo, launched in 2013, reportedly raised funds of around $ 58.5 million in a Series B funding round in October 2018 with Goldman Sachs and Novogratz’ Galaxy Digital Ventures among the interested investors.

Mike Belshe, CEO of BitGo, said that since everyone is looking to maximise profits, some users are lured by firms not having a stable security system but which offer fast withdrawal of funds from cold storages, leading to loss of funds or breaches that are caused by hackers.

On Jan.16, BitGo had announced via a press release the beginning of its partnership with Genesis Global Trading, a digital asset trading firm, who have a wallet of their own in BitGo’s cold storage.

Belshe was reported as saying:-

“Our partnership with Genesis, a FINRA and SEC regulated company, gives our clients access to liquidity through Genesis’ robust network of trading partners.”

The cold crypto storage would allow users to sell and buy assets that would be present in their wallets in next to no time, without having to worry about price fluctuations as all transactions would be in real-time.

Initial reports suggest that cryptocurrencies like Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Ripple, and ZCash would be the ones that BitGo’s cold storage service would be starting out with.

BitGo has developed a product that might make its clients feel secure than having to move their funds onto exchanges and running into the risk of exchanges being hacked, as was the case in the recent hacking of New Zealand based Cryptopia Exchange.

BitGo is also the recipient of the state trust company charter which allows it to operate as a qualified custodian for crypto-related activities, granted to the firm by the South Dakota Division of Banking in September 2018.

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